Latest Figures: Fiscal Accounts of General Government, Jan-Feb 2019
The preliminary General Government fiscal results for the period of January-February 2019, which are prepared by the Statistical Service of Cyprus (CYSTAT), indicate a surplus of €407,3 mn (1,9% of GDP), as compared to a surplus of €254,3 mn for the corresponding period of 2018 (1,2% of GDP).
Total expenditure for the first two-month period of 2019 recorded an increase of €90,2 mn (+8,9%) as compared to the same period of 2018 and reached €1.098,4 mn (€1.008,2 mn in 2018).
Current transfers recorded the biggest increase (€33,4 mn) and reached €112,5 mn in January-February 2019 as compared to €79,1,2 mn in January-February 2018. The compensation of employees (including imputed social contributions and pensions of civil servants) registered an increase of 7,3% or €26,6 mn to reach €393,4 mn (as opposed to €366,8 mn in 2018).
A smaller increase was exhibited by social benefits, which increased by €13,6 mn in 2019 to reach €410,6 mn (€397,0 mn in 2018), and payable interest, which increased by €8,2 mn to reach €61,4 mn (€53,2 mn in January-February 2018).
Investment increased by €7,6 mn and reached €29,0 mn as compared to €21,4 mn invested in January-February 2018. Excluding land annexations, that are included in investment, a decrease of €5,7 mn is observed (€13,4 mn in 2019 as compared to €19,1 mn in 2018).
Capital transfers also increased (+€5,9 mn) to total €11,0 mn (€5,1 mn in 2018), and finally subsidies increased by €1,5 mn to reach €5,8 mn.
The last and only remaining expenditure category, that of intermediate consumption, recorded a decrease during this period. Specifically, intermediate consumption was reduced by €6,6 mn and was confined to €74,7 mn (as opposed to €81,3 mn during the first two months of 2018).
Total revenue increased by 19,3%, that is €243,2 mn, to reach €1.505,7 mn during the period of January-February 2019 (€1.262,5 mn in the corresponding period of 2018).
An important increase was recorded by the capital transfers received by the State, which were increased by €125,0 mn and reached €127,4 mn (€2,4 mn in 2018).
Moreover, taxes on income and wealth increased by €60,7 mn (+19,3%) and reached €375,7 mn in January-February 2019 in comparison to €315,0 mn received during the corresponding period of 2018. Property income recorded a €36,2 mn increase to register an income of €40,2 mn during the first two months of 2019 (€4,0 mn in January-February of 2018).
Social contributions collected by the State during the period of January-February 2018 increased by 8,2% (or €26,2 mn) to reach €344,6 mn (€318,4 mn in 2018), and revenue from the sale of goods and services increased by €6,1 mn and totalled €82,0 mn (€75,9 mn in 2018).
Finally, total revenue from taxes on production and imports registered a small increase of €2,2 mn when compared to the January-February 2018 receipts (€516,4 mn in 2019 and €514,2 mn in 2018), of which net VAT revenue remained steady at €319,1 mn (€319,0 mn in 2018).
On the contrary, current transfers received were decreased by €13,2 mn and were confined to €19,4 mn during the first two months of 2019, as compared to €32,6 mn received by the State during the first two months of 2018.
Cyprus Fiscal Development (Post-programme Surveillance)